Watch these stocks as union pushes pick up

Dockworkers at U.S. ports from Maine to Texas formed picket lines on Tuesday in an organized strike over wages and automation. The threat of a prolonged strike has sparked concerns about a shortage of goods in front of the holiday season and potential supply chain inflation that could filter down to consumers.

The port strike may only last no more than a few days or weeks before President Biden exercises the Taft Hartley powers to reopen major ports. A short strike of less than a week is seen having a muted impact on container shipping spot rates and congestion, according to Bank of America. While retailers such as Target (TGT), Mattel (MAT), Hasbro (HAS), Walmart (WMT), and Costco (COST) pulled much of their inventory forward to prepare for disruption, automakers are expected to see additional congestion and lost volumes, and also have less recourse to pass through higher costs to customers.

Looking ahead, a key question could be what will be the impact for investors if unionization pushes in the U.S. continue to gain strength. Recently, several major companies have faced significant unionization efforts, reflecting a growing trend of labor organizing across various industries.

Of course, Amazon (AMZN) is a focal point, with workers at multiple facilities attempting to unionize. Despite previous setbacks, organizers are pushing forward, particularly in warehouses and delivery stations across the country. The auto industry continues to see a surge in union activity, with the United Auto Workers making significant inroads. Over 10,000 autoworkers across 13 non-union companies, including Volkswagen (OTCPK:VLKAF) (OTCPK:VWAGY), Mercedes-Benz (OTCPK:MBGAF), Toyota (TM), and Tesla (TSLA) have signed union cards with the UAW in less than 90 days.

In the tech sector, unionization efforts have been seen at sector heavyweights such as Google (GOOG), Apple (AAPL), and Microsoft (MSFT). Fleet drivers for Costco (COST) authorized a strike after negotiations with the big-box retailer failed to resolve workplace and pay issues with the Teamsters union. In Philadelphia, Aramark (ARMK) workers at three sports stadiums are on strike. Meanwhile, Starbucks (SBUX) is negotiating with workers at hundreds of stores that already voted to unionize. The pharmacy sector has also seen unionization attempts, with employees at several CVS (CVS) stores successfully forming unions. Negotiations between Boeing (BA) and the International Association of Machinists and Aerospace Workers are ongoing, with recent contract proposals rejected by union members. The hotel sector has also been circled by analysts as a potential target for strikes in Q4 and 2025, which could be a concern for Marriott International (MAR), Hilton Worldwide (HLT), and Hyatt Hotels (H).

General Motors (GM), Stellantis (STLA), and Ford Motor (F) are also still in harm’s way if unions become more powerful. Despite inking labor deals last year, the Detroit automakers are accused by the United Auto Workers union of not following through on promises.